Tilray shorts fell by about 45,000 in the past week, says S3 Partners

But the drop in the number of shares shorted is not a squeeze in the market

The Canadian cannabis company's shares have become a battleground stock

The number of shares that are being shorted in Tilray Inc (NASDAQ:TLRY) has gone down by about 45,000 over the last week, a report by analytics company S3 Partners said on Wednesday.

Ihor Dusaniwsky said in a tweet the short interest in the Canadian cannabis company at this time is worth $385 million and the number of shares shorted stands at 3.57 million, accounting for 34.63% of the bloat.

$TLRY short interest is $385 mm, 3.57 mm shares shorted, 34.63% of float. #Tilray shares shorted decreased by 45k over the last week, in no way a short squeeze as the stock was down 7% & shorts were up $128 million in mark-to-market profits. Borrow costs cheaper @ 50% to 70% fee. pic.twitter.com/e7RTrySMne

Borrowing costs are now ranging from 50% to 70% fee, compared with the 500%-700% fee levels at the height of the rally in the stock last week when the share price charged to an all-time peak of $300.

Tilray is a Canadian cannabis company where market bulls and bears are battling it out, with the bulls pointing to the upcoming legalization of cannabis in Canada and short sellers claiming the stock is overvalued.